When the Ocean Pines Association Board announced that they would move forward and proceed in the next step in their suit against the IRS, it may have been a little difficult to swallow for some. There was more than a little concern that the decision was based primarily in Board’s overconfidence in either their interpretation of the law or, worse, plain willfulness.
It was a relief, then, to hear they were actually holding off on the final decision until they had a better sense of the cost.
Doing the math on whether or not it would make more sense to continue to run up legal fees or just cut the losses makes sense on many levels. The most important aspect of this decision is, for the first time apparently, OPA will have a reasonable accounting of potential losses should they be unsuccessful in their suit.
It is irksome that it has taken OPA this long to determine an accurate figure, but the upside is the membership will at least be able to have good numbers with which to critique the decision.
Although the OPA hasn’t included this possible loss in any budgets since the onset of the IRS notice, it is worth noting should they decide to go forward, that there still remains a possibility the Association could prevail before the full panel of judges.
If they do, then all the money they’ve already invested would have been well spent.